Criteria for evaluating Governance - Financial Services

S.n Point of view

1. Role of the board in promoting a control culture.
2. Board reviews of policies and procedures regarding controls
3. Composition of the board and board committees, and competence of members
4. Existence of audit, risk, and remuneration committees
5. Independence of the board
6. Proportion of non-executive directors to executive directors AND Management of
non-executive director conflicts
7. Terms of reference for the board and board committees
8. Frequency of board meetings AND Adequacy and timeliness of information received
by the board
9. Direction, understanding, monitoring, and control over business activities & related
risks
10. Existence of policies and procedures to ensure that critical decisions are made with
appropriate approval
11. Existence of processes to ensure that policy overrides are minimal and exceptions
are reported to management
12. Appointment process for non-exec directors, tenure & compensation
13. Consideration given by the board to the relationship with the regulator
14. Existence of a strategic-planning process, including objective setting, creation of
short-term business and operating plans, and monitoring of implementation
15. Extent to which the strategic-planning process reflects FSA’s priorities,
consideration given to risk profile, financial soundness, & capital adequacy
16. Participation levels on committees.
17. Willingness and ability to exercise independent judgement and to challenge
management.